You are on page 1of 11

NTPC Limited

Corporate Human Resources Division


HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 1 of 11
HOUSE RENT ALLOWANCE RULES 1
1.0

SCOPE

1.1

House Rent Allowance is payable to the eligible employees who are not provided with the residential accommodation by the Company at the places where
the Company has its Projects/Units/Offices etc.

2.0

APPLICABILITY

2.1

For the purpose of House Rent Allowance, the employees eligible are those
borne on the regular establishment of the Company including probationers, lien
holders, deputationists (unless otherwise specified in their terms of deputation)
and persons appointed on contract basis (unless otherwise specified in the
terms of their contract) but excluding apprentices/trainees whether engaged
under Company's own training scheme or under the Apprentices Act, 1961
(save to the extent specifically mentioned in these Rules) and muster roll, daily
rated, casual, badli or substitute employees.

3.0

DEFINITIONS:
In these rules, unless the context otherwise requires:

3.1

"Company" means N T P C Limited including the offices/projects/units under its


management.

3.2

"Places" means X, Y & Z Class cities notifed by the Government of India for the
purpose of payment of HRA to the Central Govt. employees, from time to time
and other unclassified localities.

3.3

"Family" means employee's spouse, legitimate children and step children


(including legally adopted children) and parents (parents-in-law in case of female
employees).

3.3.1

Only one spouse is included in the term "Family".

3.3.2

Step children include the children of the spouse from a previous marriage, where
the same was dissolved due to legal divorce or death of the other party to such
marriage.

3.3.3

Where both husband and wife are employed in the Company, the dependent
parents of either of the spouses may be treated, at their option, as parents for the
purpose of these rules.

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 2 of 11
3.4

In case of a re-employed pensioner, pension and pension equivalent or


retirement benefts will also be considered as pay provided and to the extent
the same has been taken into consideration for fxation of his basic pay. In
such a case, if the sum of his pay -plus pension exceeds the pay of the post, if it
is on a fixed rate of pay or the maximum pay of the post, if it is on a time scale
of pay, such excess shall be ignored.

3.5

"Rent" means the charges paid by a Company employee as consideration for


unfurnished accommodation occupied by him if he is a tenant: and the gross
rental value of the house as assessed for municipal purpose or otherwise,
including municipal and other taxes, except service taxes levied separately,
and described as such that are legally payable by the occupier.

3.5.1

In case an employee resides in a hostel or a boarding house or resides and


boards as a paying guest, rent will be the amount equal to 40% of the lodging
and boarding charges or 80% of the lodging charges if boarding is not availed of,
as the case may be.

4.0

TERMS & CONDITIONS

4. l

An employee shall be eligible to the grant of HRA only if h has not been
provided accommodation by the Company at his place of posting.
Accommodation for this purpose means family accommodation including any
accommodation provided by the Company free or at subsidised/stipulated rates in
the Guest House/Transit Camp/Hostel/Company Quarter etc.

4.1.1

Provided, however, an employee who has been allowed to retain his family (i.e.
employee's spouse and dependent children only) at any station of choice in India,
other than project sites under the provisions of Special Facility of House Rent
Allowance as notified by the management from time to time, shall be eligible to
the grant of HRA for such station at the rate applicable for the place concerned.

4.1.2

Provided,further, where an employee on transfer has been permitted to retain


accommodation provided by the company at his previous place of posting on
payment of normal rent or penal rent, he shall be entitled to HRA at his new place
of posting provided that h has not been provided any free accommodation or
accommodation at subsidised rates (including Guest House/Field Hos tel) at the new
place of posting and subject to the guidelines, if any, issued in this regard.

4.2

Trainees recruited under company's own Training Scheme and placed in- the
regular pay scales of the Company during their training period shall also be eligible
for grant of HRA provided the company fails to arrange, for them, free bachelor
(hostel) accommodation at the places where they undergo long term training.

4.3

An employee shall not be eligible to the grant of House Rent Allowance, if:
(a)

he refuses to take possession of the accommodation being provided by the


Company. For this purpose, an employee to whom the accommodation
(other than single room hostel accommodation) is provided by the Company
irrespective of the fact whether accommodation so provided is as per his
entitlement or not, and h refuses to take possession of the same, shall be
deemed to have been provided accommodation for the purpose of these
rules and therefore, he shall not be eligible to the grant of HRA from the

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 3 of 11
date following the last date stipulated in the allotment letter for occupying
the Company's accommodation;
(b)

he resides in the accommodation provided by the Company to another


employee;

(c)

he resides in the accommodation provided to his parents/children by the


Government or any other Public Sector Undertaking/Quasi Government
Body/Autonomous Body etc;

(d)

his spouse has been provided accommodation at the same station by


the Government or any other organisation (Public Sector
Undertaing/Quasi
Government
Bodies/Autonomous
Body
etc.)
irrespective ofthe fact whether h resides in the accommodation so
provided or separately in another accommodation;

(e)

he continues to occupy the accommodation provided by the Company


save to the extent otherwise specified in these rules; and

(f)

any Company employee residing in Governrnent / Autonomous and Serni


Government Organisation run hostels (which charge subsidized rent
only).

5.0

RATES

5.1

House Rent Allowance will be admissible as per the rates notified by the
Management from time to time, for different places (The current rates of HRA for
different classes of cities are reproduced at Annexure-I)

5.2

House Rent Allownce is admissible to the employees at the rates as above, to all
employees without requiring them to produce rent reciepts.
NOTE:

6.0

The latest list of cities where HRA is admissible is reproduced at


Annexure-II.
However, payment of HRA shall be governed in
accordance with the classification of cities, as notified by Government
of India from time to time.

OTHER CONDITIONS
An employee who satisfies the terms and conditions laid down in these Rules shall
be entitled to the grant of HRA at the prescribed rates, subject to the following
conditions:

6.1

Where both husband and wife are employed in the company and residing in
the same rented unfurnished accommodation HRA shall be admissible to either
or both of them in accordance with any of the following provisions:

6.1.1

Both husband and wife may draw House Rent Allowance individually at the
prescribed rates as per their entitlements subject to fulfillment of other
conditions for drawl of the allowance.

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 4 of 11
6.2

Where the spouse of an employee is working in another organisation and is


claiming HRA from her/his organisation, the entitllment of HRA to the
employee shall be governed in accordance with the provisions stipulated at
Rule 6.1, as if the employee's spouse is also working in the Company.

6.3

Where an employee is sharing accommodation with his parents/son/daughter/


another employee of the Company who is claiming HRA for that
accommodation, on production of Rent Receipt/municipal valuation of the
accommodation, from any organisation including the Company, he shall be
entitled to claim HRA.

6.4

Where an employee is sharing Government accommodation allotted to a central


Government employee, not related to him, he shall be entitled to claim HRA at
the applicable rates.

6.5

Where an employee is residing in Company's/Government accommodation on


payment of penal/market rent h shall be entitled to claim HRA at the applicable
rate considering the penal/market rent as rent paid for that accommodation.

6.5.1

Where an employee is residing as a paying guest in hostel or boarding house on


payment of rent, h shall be entitled to claim HRA at the applicable rate considering
the rent as rent paid under sub-rule 3.5.1 for that accommodation.

7.0

HRA FOR ACCOMMODATION OWNED BY THE EMPLOYEE OR HIS/HER


FAMILY

7.1

8.0
8.1

An employee who is residing in an accommodation owned by him or any of


his members or Hindu Undivided Family (HUF) in which h is a co-partner, shall
also entitled to claim HRA as per the terms and conditions mentioned at
Rule 6.0 except, that for the purpose of production and verification of Rent
Receipt, wherever applicable, the rental value of the house/portion of the
house actually occupied by him shall be determined by a Committee
constituted for this purpose by General Manager (HR) for employees
posted at Corporate Centre (including those borne on its rolls) and
concerned Head of Project/Unit in case of employees posted at
Projects/Units/Regional Headquarters(including those borne on their
respective rolls). Based on the rental value so assessed by the Committee
the HRA entitlement of the employee shall be computed considering the
said value as ren.t paid by the employees.
HRA IN DIFFERENT SITUATIONS :
HRA shall also be admissible to an employee subsequent to the happening of any of the
events specified below for period mentioned against each, at the rates applicable to the
respective place of posting immediately before the happening of any of the said events,
subject to the condition that the employee retains his family at that place. However, in
case of joining time and training within India exceeding 6 months the admissibility of HRA
shall be governed by the provisions of the relevant rules:

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 5 of 11

9.0

Event

Permissible Period

1.

Leave of any kind excluding


EOL

Full period of leave.


If an employee does not join duty after availing
him self of such leave and resigns he shall not be
eligible for HRA for the entire period of leave.

2.

EOL on medical ground

Upto a maximum of 120 days.


If an employee does not join duty after availing
himself of such leave and resigns he shall not be
eligible for HRA for the entire period of leave.

3.

Joining Time

Full period of joining time as admissible under the


relevant rules.

4.

Transfer to a place outside


Headquarters

Upto a period of 2 months from the date of


release, provided the employee has not been
provided accommodation by the Co. at his new
place of posting subject to provision 4.1.2. The
limit of 2 months may, however, be extended
upto the period not beyond the end of academic
session by an authority not below the level of
General Manager if the employee has been
transferred in the midst of an academie session
and shifting of family is likely to adversely affect the
education of his children.

5.

Suspension

Full period of suspension subject to production of a


certificate to the effect that he continues to incur
expenditure for his residential accommodation
during the period of suspension.

6.

Training
a) Within India

Full Period of Training

b) Outside India

Full Period of Training

PROCEDURE

9.1

Employees claiming HRA shall be required to furnish a declaration to the


concerned HR Department in the prescribed proforma, as applicable, at the time
of joining the place of posting and thereafter at the beginning of every Financial
year. The prescribed performa are enclosed at Annexure-III

10.0

GENERAL

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 6 of 11
10.1

Relaxation of any other kind not provided hereinbefore may be permitted only
by the Chairman and Managing director. (In case of any doubt regarding the
interpretation/implementation of the above rules and also in respect of
cases/matters not covered herein the same shall be referred to Corporate HR
Division for decision/clarifcation).
AUTHORITY:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Corp. Personnel lOM no. 01:Pers:7(5) dt. 28.4.1987


Corp. Personnel Circular No. 213/88 dt. 8.8.1988
Corp. Personnel Circular No. 234/89 dt. 19.8.1989
Corp. Personnel IOM No. 01:Pers:7(5) dt. 17.10.90
Corp. Personnel IOM No. 01:Pers:7(5) dt. 18.2.1991
Corp. Personnel Circular No. 270/91 dt. 10.7.1991
Corp. Personnel Circular NO. 271/91 dt. 10.7.1991
Corp. Personnel IOM No. 01:Pers:7(5)/237 dt. 17.8.1993
Corp. Personnel Circular No. 340/95 dt. 8.12.1995
Corp. Personnel Circular No. 342/95 dt. 9.12.1995
Corp. Personnel Circular No. 349/96 dt.30.12.1996.
Corp. Personnel Circular No. 454/2000 dt.29.12.2000.
Corp. Personnel Circular No. 457/2001dt.2.3.2001.
Corp. Personnel Circular No. 464/2001, dt.19.4.2001
Corporate HR Circular No. 662/2009 dated 16.09.2009
Corporate HR Circular No. 682/2010 Dated 07.07.2010
Corporate HR Circular No. 684/2010 Dated 08.07.2010
Corporate HR Circular No. 686/2010 Dated 17.08.2010

ANNEXURE- I

CLASSIFICATION OF CITIES/TOWNS DECLARED BY CENTRAL GOVT FOR GRANT OF HRA


Revised Classification of Cities/Towns

Rates of HRA
(% of basic pay)

X (previously classified as A1)

30%

Y(previously classified as A, B1 & B2)

20%

Z (previously classified as C and unclassified)

10%

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 7 of 11
ANNEXURE-II
LIST OF CITIES / TOWNS WHERE HOUSE RENT ALLOWANACE IS ADMISIBLE TO
CENTRAL GOVERNMENT EMPLOYEES
S.
No.
1.

STATES

2.
3.
4.
5.
6.
7.

Assam
Bihar
Chandigarh
Chhattisgarh
Delhi
Gujarat

8.
9.
10.
11.

Haryana
Jammu & Kashmir
Jharkhand
Karnataka

12.

Kerala

13.

Madhya Pradesh

14.

Maharashtra

Greater Mumbai (UA)

15.
16.
17.
18.
19.

Orissa
Punjab
Pondicherry
Rajasthan
Tamil Nadu

Chennai (UA)

20.
21.

Uttarakhand
Uttar Pradesh

22.

West Bengal

Andhra Pradesh

CITIES CLASSIFIED
AS "X"
Hyderabad (UA)

CITIES CLASSIFIED AS "Y"


Vijayawada
(UA),
Warangal
Visakhapatnam (UA), Guntur
Guwahati (UA)
Patna (UA)
Chandigarh
Durg-Bhilai Nagar (UA), Raipur (UA)

(UA),

Delhi (UA)

Bengaluru (UA)

Kolkata (UA)

Ahmedabad (UA), Rajkot (UA), Jamnagar


(UA), Bhavnagar (UA), Vadodara (UA), Surat
(UA)
Faridabad*
Srinagar (UA), Jammu (UA)
Jamshedpur (UA), Ranchi(UA) Dhanbad(UA)
Belgaum (UA), Hubli-Dharwad, Mangalore
(UA), Mysore(UA)
Kozhikode
(UA),
Kochi
(UA),
Thiruvanathapuram(UA)
Gwalior (UA), Indore (UA), Bhopal (UA),
Jabalpur (UA)
Amravati, Nagpur (UA), Aurangabad (UA),
Nashik (UA)
Cuttack (UA), Bhubaneswar (UA)
Amritsar (UA), Jalandhar (UA), Ludhiana
Pondicherry (UA)
Bikaner, Jaipur, Jodhpur (UA), Kota (UA)
Salem (UA), Tiruppur(UA), Coimbatore (UA),
Tiruchairappalli (UA), Madurai (UA)
Dehradun (UA)
Moradabad, Meerut (UA),
Ghaziabad*,
Aligarh, Agra (UA),Bareilly (UA), Lucknow
(UA),
Kanpur
(UA),
Allahabad
(UA),
Gorakhpur, Varanasi (UA)
Asansol (UA)

* Only for the purpose of extending HRA on the basis of dependency


NOTE:
The remaining cities / towns in various States / UTs which are not covered by
classification as "X or "Y" are classified as "Z" for the purpose of HRA.

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 8 of 11
ANNEXURE-III
Declaration For House Rent Allowance
(To be submitted in duplicate)
1)

2)
3)

I certify that my family is neither in possession of any accommodation


(including field hostel/guest house) nor, sharing the accommodation,
provided by the company or by any state/central Govt./autonomous
body/public undertaking or semi Govt. organization like municipality, port
trust etc. to any of my family members.
I certify that I have not refused the company accommodation allotted to me.
I certify that I am contributing towards rent for the place of my stay at
(Address of the premises)
OR
I certify that I/my family am/is staying in a house (other than rented house)
the rental value of which is ascertainable and the house is situated at
(Address of the premises)

4)

5)

I certify that I am not sharing accommodation provided to another Govt.


servant/company employee on rent-free basis by any state/central
Govt./autonomous body/PSU or semi government organisation like
municipality, port trust etc.
I undertake to inform any change in the status of any of the declaration
mentioned above immediately and also undertake to submit the declaration
every year on 1st April.
This declaration shall be deemed to have made as on ________
(Note:- Please strike out the portion which is not applicable)

Date:

Signature:........................................
Name:..............................................
Employee No....................................
Designation:..................................
Place of posting.
Note: HR-EB (For forwarding to F&A for payment)
FIN. Estt.

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 9 of 11
Special Facility of payment of House Rent Allowance for retention of Family at any station of
choice of India other than Project sites.

1.0

The special facility of House Rent Allowance for retention of family at any station of
choice in India other than Project sites, has been extended upto 31.03.19953 to
employees posted at:
i)

Projects/Stations of NTPC (other than BTPS) including Gas based Power


Projects; and

ii)

Such Establishment/Offices located at a distance of more than 8 Kms.


from the nearest town/city^2.

2.0

The above facilities shall be admissible only to employees in the regular


establishment who are not allotted suitable permanent family accommodation at
company's townships and each case pertaining to the special facility will be
approved by the Executive Director of the Region under which the project/station
falls.

3.0

Employees availing of the above special facility will be provided rent-free shared
bachelor accommodation only at the project sites.

4.0

The above special facility shall be withdrawn on allotment of family accommodation


except in case where the Executive Director of the concerned Region is satisfied that
for reasons of education of children, it is not possible for an employee to shift his
family to the project site on allotment of family accommodation immediately or for a
specified period (but in no case beyond the duration of the special facility). The
relaxation will, however, be permitted only in respect of school-going children of the
employees for whom appro-priate class/standard is not available in the schools in
the project at the time of allotment of family accommodation or who are to be
retained in their old schools away from the project to avoid a shift during academic
session. Similar exceptions on any other pressing and genuine grounds may be
permitted only with the approval from the Corporate Centre, when such
relaxations are allowed by the concerned Executive Director, the concerned
employee shall forego the allotment of family accommodation made at that time at
the project site and his claim for such accommodation at any later date when h
ceases to draw the above mentioned House Rent Allowance will be dealt with on the
basis of his usual seniority, not-withstanding anything to the contrary in the Rules for
Allotment of Residential Accommodation.
Clarifications:
(i)

(ii)

If family accommodation at the company's township has been provided to an


employee, the special facility of House Rent Allowance shall not be admissible
even though the allotted family accommodation to not of the entitled type.
Unmarried employees are not eligible for payment of House Rent Allowance for
retention of their parents, brothers, sisters, etc. at any station of choice in India,

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 10 of 11
even though they might be compelled to keep them away due to nonavailability/non-allotment of family accommodation to them at the projects.

AUTHORITY:
1. Corporate Personnel Circular No. 46/80 dt. 28.10.1980.
2. Corporate Personnel Circular No. 240/89 dt. 23.10.1989.
3. Corporate Personnel IOM No.:01:Pers:7(18)/233 dt.8.2.1993

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Rent Allowance Rules

Section:0206
Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012

Page: 11 of 11
RECORD OF REVISIONS
Section-Clause No.
0206-Record of
Revisions

Revision
No.
0

Revision
Date
13.02.2012

Amendment Details
Provision Added

PREPARED BY

REVIEWED BY

APPROVED BY

Kanhaiya
M(HR)

Harleen Sachdeva
M(HR)

D S Rao
AGM(HR)

You might also like